Charging off the cost of a wastebasket with an estimated useful life of 10 years as an expense of the period when purchased is an example of the application of the
A) consistency quality.
B) expense recognition principle.
C) materiality quality.
D) historical cost principle.

Question

Quizplus · Accepted Answer

The materiality quality allows for the immediate expensing of small-dollar items, like a wastebasket, that may have a longer useful life but are of low cost, simplifying the accounting process by not capitalizing and depreciating such minor purchases over their useful life.

Charging Off the Cost of a Wastebasket with an Estimated